RMC to sell Great Mills 'for £275m'

Do-it-yourself chain Great Mills is to be sold by owner RMC, the cement and ready-mixed concrete group, in a deal that could net £275m.

RMC recently suffered a profits warning and it has decided to sell off Great Mills' 95 stores with 3.5m square feet of space in order to concentrate on its core business. RMC confirmed that it has already received 'a number of unsolicited expressions of interest' in the business so it should sell swiftly.

Analysts believe the business could be worth between £250m and £275m with Focus/Do It All being favourites to take over. RMC shares were unchanged at 766p.

Great Mills was established in 1992 mainly in the Southwest of England. Its current 3.5m sq ft distribution centre is based in Bristol. In 1999, its turnover rose by 5% and although it does not report profits for Great Mills, RMC claimed that profits rose.